Australian data center operator NEXTDC Limited says customer credits tied to a delayed power upgrade at its Melbourne M3 site could push fiscal 2027 underlying EBITDA below revised guidance.
In an Oct. 21 exchange filing, NEXTDC cut its net revenue outlook for the year ending June 30, 2027, to A$475 million to A$500 million from A$615 million to A$640 million. It lowered underlying earnings before interest, taxes, depreciation and amortization guidance to A$245 million to A$265 million from A$385 million to A$410 million.
The August guidance included about A$140 million in each measure from M3 contracts affected by the delay. NEXTDC left their revenue and attributable earnings out of the revised ranges because it cannot reliably estimate their contribution, even though some capacity is already being billed.
Actual fiscal 2027 results will include whatever those contracts contribute. Potential service credits are also outside the guidance ranges, and NEXTDC said they could bring underlying earnings below the forecast minimum.
NEXTDC says the capacity remains contracted. The customer may receive credits if delivery is late or the available power falls short, and may terminate under specified circumstances. The power delay also postpones billing for additional capacity.
NEXTDC said Jemena Electricity Networks (Vic) Ltd suspended parts of its 66-kilovolt line work in September. In NEXTDC’s account, Jemena cited safety concerns and restricted access amid community opposition, while local council consent remained outstanding during further consultation. NEXTDC said Jemena's timetable puts a restart of the suspended work no earlier than February 2027.
NEXTDC expects the next increase in grid supply at M3 during fiscal 2028. Its shares fell 41.72% on Oct. 21 following the forecast cut.
The company reduced its capital spending forecast to A$4.5 billion to A$5 billion and paused new development projects and land acquisitions. It plans to announce the outcome of a spending review by its Nov. 20 annual meeting.
